Is Illinois an ‘eligible issuer’ for new Fed lending? – Truth in Accountng

Traditional lender-of-last-resort theory cautions that central banks should restrict their lending to illiquid but solvent institutions. The City of Chicago and State of Illinois may not strictly be in bankruptcy or related resolution arenas yet, but they have been headed in that direction, and more than a few parties believe those proceedings can and/or should arrive down the road.
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ConcernedExpat
6 years ago

The MLF program is a violation of vertical separation of powers.

Mick the Tick
6 years ago
Reply to  ConcernedExpat

I am totally in favor of MILF. Oh…you said MLF. Never mind.

Tom Paine's Ghost
6 years ago

Cant this illegal use of federal money be challenged in court?

UnclePugsly
6 years ago

No mention in article of what happens if Illinois defaults (and it will if it can) on this unsecured ‘loan’ from the Fed.

DantheMan
6 years ago

I continue to find it amazing that people are allowed to escape Illinois debt by simply crossing the state border….and yet they don’t. It’s like prisoners remaining in their cell when all the doors are open and there are no guards.

Joe Blow
6 years ago
Reply to  DantheMan

haha this is so true
 

Last edited 6 years ago by Joe Blow
Jane
6 years ago
Reply to  DantheMan

Well, some folks have businesses, some folks have homes, some folks live rural where high city/town taxes haven’t touched them yet. Some folks are too poor to move, or don’t have a job elsewhere. There are myriad reasons, and although they make not make sense to US, they do to the people ‘caught’ in Illinois.

Aaron
6 years ago
Reply to  Jane

Businesses that would be better off elsewhere, homes that do not appreciate due to extreme property taxes, poor folks would have more disposable income in another state. . .the real reason is that illinoisians do not realize what a shit hole Illinois really is.

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